Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-09-23
The Problem for the Admins
tratiOn.

The Problem for the Admins
tration.
| The remarkable fluctuations in the prices
OF Wall Street and the tumblings oil
the stocks in the Exchange have created a
demand for more money. Money is scarce
The brokers are able to borrow it only on
time. There is an increasing liability oil
panic which must follow ii the events OF
the past few days find repetition to any
considerable extent. Some urge an extra
session OF Congress to adopt measures to
avert the impending financial crisis. but
so utterly helpless is the dominant party
to institute and promulgate measures, that
this method seems, upon close examine
ton, to be impracticable. Others suggest
that the Secretary of the Treasury relieve
the depressed state of the money markets
by the purchase of bonds. The Tribune
considers this very unwise remedy, since
1t would only rally the stock and specula-
tive markets temporarily without assisting
legitimate trade and other branches of
productive industry that are unquestiona.
bly, embarrassed by lack of available re-
sources The Tribune continuing. says
1.-THE difficulty Is that the speculative force
is like expanding steam in boiler, safe when
confined, perilous only when suffered to GIT
beyond restraint. That a strong rally would
immediately follow any expansion by the
Treasury is admitted, and the Secretary is
perfectly aware that, with higher prices for
t ,cks, grain. provisions, cattle and other
objects of speculation, more money would be
required t. carry and handle the same guam
tity of supplies. Moreover, the supplies
would RAJ idlv increase. Securities amount
ing to many millions are waiting to be fioatad
on the first speculative wave. Wheat exceed
ing 2OO, 900 900 bushels is for sale. including
old stock, and a crop of cotton worth $500
600. 900, and great quantities of other pro-
ducts. There have been built this year about
7 900 miles of railroad, and houses, stores and
other structures costing several hundred mil
lions, which somebody would like to sell at
| good figures. The quantity of real estate
which could be bought this day at prices
| called Glow" because not so high rs those
paid three months or six months ago, is large
enough to keep several minis in operation
supplying the needfu cash. If all these
POPULATIONS suddenly take new start, how
much money will they absorb?
Secretary Fairchild should understand that
no financial relief, but only more pressure
with inal collapse, lies that way He did not
| help business but speculation, when ne rap
idly inflated the currency last year II he
| puts out ten, twenty, or even ntfy millions
now, every dollar That 1t could get would De
absorbed by speculation, and the needs OF
legitimate trade might be in no respect better
supplied than they are now. 1t the Secretary
could loan or pay direct to merchants or
manufacturers, and not to the holders of
bonds, that would be another matter. But
the holders of bonds are not the merchants or
manufacturers, and they are apt to seek as
profitable employment or money as they can
| get and the speculator will offer higher IT.
tprest than any legitimate operation can.
This il not good time to initiate again,
b cause the effects of former uhwise IN
fatiou make MONEY tight. The supply OF
money in the country is abundant Tor All
| legitimate needs it is not large enough to
enable bold operators to buy up the world
and all It's crops, or to build in year all the
houses. stores railroads, factories and other
structures that will be wanted FIVE years
hence As tor the political side of the
quest ton, the Secretary may De sure t1at lie
aud President Cleveland will hear very often
of the price he may pay bondbolders in order
| to encourage speculation, and that hearing
may not hereafter be pleasant to him"
Here, then, in view of the impracticabil.
ity OF the two methods of relief tor legiti'
mate trade and productive industries pro-
posed, if considered correctly, is aproblem
tor this administration supported by aparty
claiming to be so much more competent
than the party which is deprived of power,
to solve or it must accept the responsibility
of a financial calamity which seems immi'
nent and which SCATTERING the industrial and
commercial interests of the country mus'
in no small measure affect the party in
power.